Parex Resources (PXT) Q1 2025 earnings summary

Executive summary

• Q1 2025 production averaged 43,658 BOE/d, in line with expectations and supporting a growing H2 2025 profile.

• Q1 2025 funds flow from operations reached $122 million ($1.24 per share), with net income of $81 million ($0.82 per share).

• Strategic acquisition of full working interest in Llanos 32 (LLA-32) completed for $16 million, adding 4,000 BOE/d and expanding development inventory.

• Positive near-field exploration results in Southern Llanos and LLA-74, with new production online and further development planned.

• Activity plan remains disciplined and flexible, focusing on lower-risk, high-graded opportunities.

Financial highlights

• Q1 2025 EBITDA was $139 million; Adjusted EBITDA was $135 million.

• Funds flow from operations was $122 million, with a strong FFO net back of $30.90/BOE, based on an average Brent price of $74.98/bbl.

• Free funds flow totaled $65 million after $57 million in capital expenditures.

• $10 million of bank debt repaid; working capital surplus increased to $69 million and cash to $81 million.

• Paid C$0.385 per share dividend and repurchased 524,900 shares in Q1 2025.

Outlook and guidance

• Full-year 2025 production guidance maintained at 43,000–47,000 BOE/d; capital expenditure guidance unchanged at $285–$315 million.

• Q2 activity to normalize with three rigs drilling multiple development wells; capital forecast to increase as per budget.

• Effective current tax rate for FY 2025 expected at 0–3% at current Brent pricing.

• Vasconia differential expected to average $3 for the remainder of the year.

• Company remains flexible to adjust activity and capital allocation in response to commodity price volatility.